With Monday's passage of a 2014 budget for the City of Lyndhurst, council will now look ahead to next year, and the prospect of asking voters to consider an increase in the local income tax, which currently stands at 1.5 percent, with a half-percent credit for residents.

LYNDHURST, Ohio -- In passing its 2014 budget totaling more than $23.2 million on Monday (March 3), officials cited the city's current financial solvency, but also pointed out the need for possible tax increases next year.

"While it is fortunate that the city basically has no debt, due to (City Finance Director Mary) Kovalchik's watchful eye and this council taking advantage of opportunities, the funding for future needs will be a tremendous challenge," noted Councilman Patrick Ward, who chairs the Finance Committee.

The city's general fund will contain about $14.7 million this year, with nearly half of that going to its safety forces, where Fire Chief Mike Carroll's nearly $2.8 million budget is slightly reduced from last year.

"Devoting over $7 million to maintain, as best we can, the safety and security of persons and property in the city is no small amount of money, and it is no small task," Ward noted.

With the police department allocated for about $4.2 million, the next largest departmental allocation goes to refuse collection, which will receive $670,000, along with about $255,000 for recycling.

If all of the general fund money is spent this year, it should leave the city with roughly a $1.8 million carry-over into 2015.

But that surplus amount will continue to dwindle, Mayor Joe Cicero noted earlier, pointing out that it is already about $2 million less than what was carried over from 2013.

"We have received significant Estate Tax distributions in the past to support capital purchases and to offset losses in income tax revenue, property valuation and Local Government Funds from the state," Cicero stated at council's Feb. 24 budget hearing. "But those days are over and we have to address reality."

Last year, the city received another $2.2 million in holdover Estate Tax, which was actually discontinued by the state legislature at the beginning of 2013.

Those proceeds came from estates that were still tied up in Cuyahoga County Probate Court, and this year's projections for any remaining Estate Tax collections are only about $100,000.

Over in its $3.5 million capital fund, the city will continue what is generally a $1 million-a-year street improvement program as well -- something that city officials want to continue.

"We need to look, once again, at our revenue by eliminating the income tax credit or by some other means in order to assure that Lyndhurst survives these challenging times," Cicero said.

As was the case when the idea was introduced back in 2012 then shelved early last year, Cicero favors rescinding the half-percent credit that residents receive on the city's current 1.5 percent local income tax.

But a majority of council feels this places too much of a burden on residents, and favors raising the overall municipal income tax to 1.75 or 2 percent, with this proposal appearing on the ballot, possibly as early as August.

Kovalchik has been asked to update the "scenarios" that council discussed last year, in terms of what the proposed tax hikes could bring in to the city, if one was approved and took effect next January.

Those projections could be presented to City Council at its March 17 meeting. Councilman Keith Packard would also like at least three public hearings to be scheduled along with three readings of any proposals before one is forwarded to the county Board of Elections in May.

"That will allow enough time to place a ballot issue before the public that would not automatically rescind the residents' tax credit, should the measure fail," Ward said, alluding to a proposal last year that was scrapped after enough Estate Tax was collected from 2012.

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